This report is for informational purposes only. It should be read in conjunction with documents filed by
The Chubb Corporation with the Securities and Exchange Commission, including the most recent
Annual Report on Form 10-K and Quarterly Reports on Form 10-Q

Effective January 1, 2003, the Corporation adopted the fair value method of accounting for stock-based
employee compensation plans using the modified prospective method of transition. The change in
accounting resulted in a decrease in operating income before income tax of $15.4 million ($10.4 million
after-tax) for the third quarter of 2003 and $51.1 million ($35.7 million after-tax) for the nine months
ended September 30, 2003.

(a)

The underwriting loss for the first nine months and third quarter of 2002 includes net losses
of $625.0 million ($406.3 million after-tax) recognized in the third quarter related to asbestos
and toxic waste claims.

Page 1 of 16

THE CHUBB CORPORATION

SHARE DATA

PERIODS ENDED SEPTEMBER 30

THIRD QUARTER

NINE MONTHS

2003

2002

2003

2002

Diluted Earnings Per Share Data

Operating Income (Loss)

$

1.16

$

(1.59

)

$

3.82

$

.68

Realized Investment Gains

.21

.17

.31

.28

Net Income (Loss)

$

1.37

$

(1.42

)

$

4.13

$

.96

Effect of Catastrophe Losses

$

(.33

)

$

(.20

)

$

(.95

)

$

(.28

)

Effect of Asbestos and Toxic Waste Losses

$



$

(2.38

)

$



$

(2.50

)

Effect of Chubb Financial Solutions
Non-Insurance Business

$

(.14

)

$

(.15

)

$

(.11

)

$

(.21

)

Effect of Expensing Stock Options

$

(.05

)

$



$

(.20

)

$



Average Common and Potentially
Dilutive Shares Outstanding (in millions)

189.4

170.6

178.4

173.3

SHARE REPURCHASE ACTIVITY

PERIODS ENDED SEPTEMBER 30

FROM

THIRD

NINE

FEBRUARY 1994

QUARTER

MONTHS

TO

2003

2003

SEPTEMBER 30, 2003

(dollars in millions, except per share amounts)

Cost of Shares Repurchased





$

2,633.4

Average Cost Per Share





$

64.71

Shares Repurchased





40,698,200

In February 1994, the Board of Directors authorized the repurchase of up to 10,000,000 shares of
common stock. Through March 1997, 6,851,600 shares were repurchased under the 1994 share repurchase
authorization. In March 1997, the Board of Directors replaced the 1994 authorization with a new
authorization to repurchase up to 17,500,000 shares of common stock. In July 1998, the Board of
Directors authorized the repurchase of up to an additional 12,500,000 shares. In June 2001, the
Board of Directors authorized the repurchase of up to an additional 16,000,000 shares; the 2001
authorization expired on June 30, 2003. As of September 30, 2003, 3,287,100 shares remained under
the 1998 share repurchase authorization.

Page 2 of 16

THE CHUBB CORPORATION

CONSOLIDATED BALANCE SHEET HIGHLIGHTS

Sept. 30

Dec. 31

2003

2002

(in millions)

Invested Assets (at carrying value)

Short Term Investments

$

2,689.4

$

1,756.7

Fixed Maturities

Tax Exempt

11,140.7

9,877.8

Taxable

10,393.3

8,385.7

Equity Securities

1,482.7

992.2

Total Invested Assets

$

25,706.1

$

21,012.4

Unrealized Appreciation of Fixed
Maturities Carried at Amortized Cost

$

40.7

$

55.8

Capitalization

Long Term Debt

$

2,814.1

$

1,959.1

Shareholders Equity

8,477.6

6,859.2

Total Capitalization

$

11,291.7

$

8,818.3

DEBT AS A PERCENTAGE OF TOTAL CAPITALIZATION

24.9

%

22.2

%

Actual Common Shares Outstanding

187.7

171.2

Book Value Per Common Share

$

45.17

$

40.06

Book Value Per Share, with Available-for-Sale
Fixed Maturities at Amortized Cost

$

41.82

$

36.61

Page 3 of 16

THE CHUBB CORPORATION

SUMMARY OF INVESTED ASSETS

CORPORATE

Cost or

Market

Carrying

Amortized Cost

Value

Value

Sept. 30

Dec. 31

Sept. 30

Dec. 31

Sept. 30

Dec. 31

2003

2002

2003

2002

2003

2002

(in millions)

Short Term Investments

$

894.5

$

106.4

$

894.5

$

106.4

$

894.5

$

106.4

Taxable Fixed Maturities

396.2

144.7

400.6

150.3

400.6

150.3

Equity Securities

8.5

71.0

8.4

71.3

8.4

71.3

TOTAL

$

1,299.2

$

322.1

$

1,303.5

$

328.0

$

1,303.5

$

328.0

PROPERTY AND CASUALTY

Cost or

Market

Carrying

Amortized Cost

Value

Value

Sept. 30

Dec. 31

Sept. 30

Dec. 31

Sept. 30

Dec. 31

2003

2002

2003

2002

2003

2002

(in millions)

Short Term Investments

$

1,794.9

$

1,650.3

$

1,794.9

$

1,650.3

$

1,794.9

$

1,650.3

Fixed Maturities

Tax Exempt

10,507.1

9,244.1

11,181.4

9,933.6

11,140.7

9,877.8

Taxable

9,665.8

7,967.8

9,992.7

8,235.4

9,992.7

8,235.4

Common Stocks

1,358.4

886.0

1,426.4

874.7

1,426.4

874.7

Preferred Stocks

40.7

41.3

47.9

46.2

47.9

46.2

TOTAL

$

23,366.9

$

19,789.5

$

24,443.3

$

20,740.2

$

24,402.6

$

20,684.4

Page 4 of 16

THE CHUBB CORPORATION

PROPERTY AND CASUALTY

INVESTMENT INCOME AFTER TAXES

PERIODS ENDED SEPTEMBER 30

THIRD QUARTER

NINE MONTHS

2003

2002

2003

2002

(in millions)

Investment Income

Dividends

$

9.0

$

3.0

$

19.9

$

7.5

Taxable Interest

86.2

76.7

253.1

220.8

Tax Exempt Interest

121.5

115.6

357.4

349.8

Investment Expenses

(2.8

)

(5.2

)

(11.3

)

(11.6

)

TOTAL

$

213.9

$

190.1

$

619.1

$

566.5

Amounts are shown net of applicable income taxes.

Effective Tax Rate

20.7

%

18.5

%

20.3

%

18.1

%

After Tax Annualized Yield

3.71

%

4.31

%

3.83

%

4.41

%

After tax annualized yield is based on the average invested assets for the periods
presented with fixed maturities at amortized cost and equity securities at market value.

STATUTORY POLICYHOLDERS SURPLUS

Sept. 30

Dec. 31

2003

2002

(in millions)

Estimated Statutory Policyholders Surplus

$

6,200

$

4,512

Rolling Year Statutory Net
Premiums Written

10,538

9,034

Ratio of Statutory Net Premiums Written
to Estimated Policyholders Surplus

1.70:1

2.00:1

Statutory Policyholders Surplus and Net Premiums Written include all domestic
and foreign property and casualty subsidiaries.

Page 5 of 16

THE CHUBB CORPORATION

PROPERTY AND CASUALTY

UNDERWRITING RATIOS

PERIODS ENDED SEPTEMBER 30

THIRD QUARTER

NINE MONTHS

2003

2002

2003

2002

Loss Ratio

65.7

%

98.8

%

65.1

%

77.2

%

Expense Ratio

30.9

31.2

30.7

31.5

Combined Ratio

96.6

%

130.0

%

95.8

%

108.7

%

Effect of Catastrophe Losses
on Combined Ratio

3.7

%

2.5

%

3.5

%

1.3

%

The 2002 underwriting ratios include the effect of losses of $625.0 million related to asbestos and toxic waste
claims recognized in the third quarter. Excluding the effect of such losses, the losses to premiums earned ratio
was 68.7% for the third quarter of 2002 and 66.5% for the nine months ended September 30, 2002 and the combined
loss and expense ratio was 99.9% and 98.0%, respectively.

CLAIMS AND CLAIM EXPENSE COMPONENTS

PERIODS ENDED SEPTEMBER 30

THIRD QUARTER

NINE MONTHS

2003

2002

2003

2002

(in millions)

Paid Claims and Claim Expenses

$

1,337.4

$

1,019.6

$

3,708.9

$

3,278.9

Increase in Unpaid Claims
and Claim Expenses

373.9

1,032.4

1,141.1

1,234.1

Total Claims and Claim Expenses

$

1,711.3

$

2,052.0

$

4,850.0

$

4,513.0

The increase in unpaid claims and claim expenses for the third quarter and the first nine months of 2002
includes $611.7 million and $617.5 million, respectively, related to asbestos and toxic waste claims.

Page 6 of 16

THE CHUBB CORPORATION

PROPERTY AND CASUALTY

CHANGE IN NET UNPAID CLAIMS
NINE MONTHS ENDED SEPTEMBER 30, 2003

All Other

Net Unpaid Claims

IBNR

Unpaid Claims

Increase

Increase

9/30/2003

12/31/02

Increase

(Decrease)

(Decrease)

(in millions)

PERSONAL INSURANCE

Automobile

$

333.3

$

306.7

$

26.6

$

8.8

$

17.8

Homeowners

569.7

488.3

81.4

70.4

11.0

Other

294.5

271.3

23.2

5.2

18.0

Total Personal

1,197.5

1,066.3

131.2

84.4

46.8

COMMERCIAL INSURANCE

Multiple Peril

1,229.8

1,224.4

5.4

41.1

(35.7

)

Casualty

3,649.4

3,526.0

123.4

(29.0

)

152.4

Workers Compensation

835.4

746.6

88.8

52.3

36.5

Property and Marine

440.1

371.2

68.9

64.7

4.2

Total Commercial

6,154.7

5,868.2

286.5

129.1

157.4

SPECIALTY INSURANCE

Executive Protection

3,811.0

3,335.3

475.7

246.5

229.2

Financial Institutions

1,664.3

1,580.5

83.8

220.6

(136.8

)

Other

955.2

791.3

163.9

214.1

(50.2

)

Total Specialty

6,430.5

5,707.1

723.4

681.2

42.2

TOTAL

$

13,782.7

$

12,641.6

$

1,141.1

$

894.7

$

246.4

Page 7 of 16

THE CHUBB CORPORATION  WORLDWIDE
PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2003 AND 2002
(MILLIONS OF DOLLARS)

Personal

Other

Total

Automobile

Homeowners

Personal

Personal

2003

2002

2003

2002

2003

2002

2003

2002

Net Premiums Written

$

443.6

$

402.1

$

1,114.2

$

971.1

$

391.4

$

364.1

$

1,949.2

$

1,737.3

Increase (Decrease) in
Unearned Premiums

28.4

26.0

93.6

115.9

23.2

28.5

145.2

170.4

Net Premiums Earned

415.2

376.1

1,020.6

855.2

368.2

335.6

1,804.0

1,566.9

Net Losses Paid

261.7

229.8

653.5

525.8

145.5

139.8

1,060.7

895.4

Increase (Decrease) in
Outstanding Losses

26.6

27.3

81.4

72.0

23.2

10.2

131.2

109.5

Net Losses Incurred

288.3

257.1

734.9

597.8

168.7

150.0

1,191.9

1,004.9

Expenses Incurred

130.5

121.0

385.2

347.2

125.0

119.4

640.7

587.6

Dividends Incurred

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

Underwriting Income (Loss)

$

(3.6

)

$

(2.0

)

$

(99.5

)

$

(89.8

)

$

74.5

$

66.2

$

(28.6

)

$

(25.6

)

Ratios After Dividends
to Policyholders:

Loss

69.5

%

68.4

%

72.0

%

69.9

%

45.8

%

44.7

%

66.1

%

64.2

%

Expense

29.4

30.1

34.6

35.8

32.0

32.8

32.8

33.8

Combined

98.9

%

98.5

%

106.6

%

105.7

%

77.8

%

77.5

%

98.9

%

98.0

%

Premiums Written
as a % of Total

5.5

%

6.1

%

13.7

%

14.7

%

4.8

%

5.5

%

24.0

%

26.3

%

Page 8 of 16

THE CHUBB CORPORATION  WORLDWIDE
PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2003 AND 2002
(MILLIONS OF DOLLARS)

Commercial

Commercial

Workers'

Property

Total

Multiple Peril

Casualty

Compensation

and Marine

Commercial

2003

2002

2003

2002

2003

2002

2003

2002

2003

2002

Net Premiums Written

$

809.4

$

687.5

$

1,010.0

$

834.7

$

475.9

$

350.3

$

766.1

$

652.7

$

3,061.4

$

2,525.2

Increase (Decrease) in
Unearned Premiums

53.3

69.6

109.1

134.8

74.1

48.5

38.7

155.7

275.2

408.6

Net Premiums Earned

756.1

617.9

900.9

699.9

401.8

301.8

727.4

497.0

2,786.2

2,116.6

Net Losses Paid

401.6

426.0

414.8

488.3

178.1

150.5

331.6

265.3

1,326.1

1,330.1

Increase (Decrease) in
Outstanding Losses

5.4

(36.4

)

123.4

601.9

88.8

37.4

68.9

(1.7

)

286.5

601.2

Net Losses Incurred

407.0

389.6

538.2

1,090.2

266.9

187.9

400.5

263.6

1,612.6

1,931.3

Expenses Incurred

295.5

264.2

292.3

251.0

112.4

88.4

262.2

216.7

962.4

820.3

Dividends Incurred

0.0

0.0

0.0

0.0

9.7

17.3

0.0

0.0

9.7

17.3

Underwriting Income (Loss)

$

53.6

$

(35.9

)

$

70.4

$

(641.3

)

$

12.8

$

8.2

$

64.7

$

16.7

$

201.5

$

(652.3

)

Ratios After Dividends
to Policyholders:

Loss

53.8

%

63.1

%

59.8

%

155.8

%

68.1

%

66.1

%

55.1

%

53.0

%

58.1

%

92.0

%

Expense

36.5

38.4

28.9

30.0

24.1

26.5

34.2

33.2

31.5

32.7

Combined

90.3

%

101.5

%

88.7

%

185.8

%

92.2

%

92.6

%

89.3

%

86.2

%

89.6

%

124.7

%

Premiums Written
as a % of Total

9.9

%

10.4

%

12.4

%

12.6

%

5.9

%

5.3

%

9.4

%

9.8

%

37.6

%

38.1

%

The Property and Casualty underwriting results for 2002 include the effect of losses of $625.0 million
related to asbestos and toxic waste claims recognized in the third quarter. For the nine months ended
September 30, 2002, excluding the effect of such losses, the combined loss and expense ratio was
96.5% for Casualty and 94.9% for Total Commercial.

Page 9 of 16

THE CHUBB CORPORATION  WORLDWIDE
PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2003 AND 2002
(MILLIONS OF DOLLARS)

Executive

Financial

Other

Total

Worldwide

Protection

Institutions

Specialty

Specialty

Total

2003

2002

2003

2002

2003

2002

2003

2002

2003

2002

Net Premiums Written

$

1,526.0

$

1,214.3

$

603.4

$

508.3

$

997.5

$

635.1

$

3,126.9

$

2,357.7

$

8,137.5

$

6,620.2

Increase (Decrease) in
Unearned Premiums

89.4

52.2

25.5

38.3

135.6

81.9

250.5

172.4

670.9

751.4

Net Premiums Earned

1,436.6

1,162.1

577.9

470.0

861.9

553.2

2,876.4

2,185.3

7,466.6

5,868.8

Net Losses Paid

658.8

625.7

397.6

228.3

265.7

199.4

1,322.1

1,053.4

3,708.9

3,278.9

Increase (Decrease) in
Outstanding Losses

475.7

291.0

83.8

120.3

163.9

112.1

723.4

523.4

1,141.1

1,234.1

Net Losses Incurred

1,134.5

916.7

481.4

348.6

429.6

311.5

2,045.5

1,576.8

4,850.0

4,513.0

Expenses Incurred

381.3

326.5

163.7

139.5

342.2

201.4

887.2

667.4

2,490.3

2,075.3

Dividends Incurred

0.0

0.0

5.6

8.0

2.7

1.3

8.3

9.3

18.0

26.6

Underwriting Income (Loss)

$

(79.2

)

$

(81.1

)

$

(72.8

)

$

(26.1

)

$

87.4

$

39.0

$

(64.6

)

$

(68.2

)

108.3

(746.1

)

Increase in Deferred
Acquisition Costs

133.7

181.3

Adjusted Underwriting
Income (Loss)

$

242.0

$

(564.8

)

Ratios After Dividends
to Policyholders:

Loss

79.0

%

78.9

%

84.1

%

75.4

%

50.0

%

56.4

%

71.3

%

72.5

%

65.1

%

77.2

%

Expense

25.0

26.9

27.4

27.9

34.4

31.8

28.5

28.4

30.7

31.5

Combined

104.0

%

105.8

%

111.5

%

103.3

%

84.4

%

88.2

%

99.8

%

100.9

%

95.8

%

108.7

%

Premiums Written
as a % of Total

18.7

%

18.3

%

7.4

%

7.7

%

12.3

%

9.6

%

38.4

%

35.6

%

100.0

%

100.0

%

The Property and Casualty underwriting results for 2002 include the effect of losses of $625.0 million
related to asbestos and toxic waste claims recognized in the third quarter. For the nine months ended
September 30, 2002, excluding the effect of such losses, the combined loss and expense ratio was
98.0% for Worldwide Total.

Page 10 of 16

THE CHUBB CORPORATION  WORLDWIDE
PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2003 AND 2002
(MILLIONS OF DOLLARS)

Worldwide

United States

Foreign

Total

2003

2002

2003

2002

2003

2002

Net Premiums Written

$

6,735.2

$

5,504.7

$

1,402.3

$

1,115.5

$

8,137.5

$

6,620.2

Increase (Decrease) in
Unearned Premiums

603.6

675.7

67.3

75.7

670.9

751.4

Net Premiums Earned

6,131.6

4,829.0

1,335.0

1,039.8

7,466.6

5,868.8

Net Losses Paid

3,350.1

2,875.6

358.8

403.3

3,708.9

3,278.9

Increase (Decrease) in
Outstanding Losses

748.6

955.7

392.5

278.4

1,141.1

1,234.1

Net Losses Incurred

4,098.7

3,831.3

751.3

681.7

4,850.0

4,513.0

Expenses Incurred

1,995.0

1,649.0

495.3

426.3

2,490.3

2,075.3

Dividends Incurred

18.0

26.6

0.0

0.0

18.0

26.6

Underwriting Income (Loss)

$

19.9

$

(677.9

)

$

88.4

$

(68.2

)

108.3

(746.1

)

Increase in Deferred
Acquisition Costs

133.7

181.3

Adjusted Underwriting
Income (Loss)

$

242.0

$

(564.8

)

Ratios After Dividends
to Policyholders:

Loss

67.0

%

79.8

%

56.3

%

65.6

%

65.1

%

77.2

%

Expense

29.7

30.1

35.3

38.2

30.7

31.5

Combined

96.7

%

109.9

%

91.6

%

103.8

%

95.8

%

108.7

%

Premiums Written
as a % of Total

82.8

%

83.2

%

17.2

%

16.8

%

100.0

%

100.0

%

The Property and Casualty underwriting results for 2002 include the effect of losses of $625.0 million
related to asbestos and toxic waste claims recognized in the third quarter. For the nine months ended
September 30, 2002, excluding the effect of such losses, the combined loss and expense ratio was
96.9% for United States Total and 98.0% for Worldwide Total.

Page 11 of 16

THE CHUBB CORPORATION  WORLDWIDE
PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE QUARTER ENDED SEPTEMBER 30, 2003 AND 2002
(MILLIONS OF DOLLARS)

Personal

Other

Total

Automobile

Homeowners

Personal

Personal

2003

2002

2003

2002

2003

2002

2003

2002

Net Premiums Written

$

154.3

$

144.0

$

402.9

$

353.4

$

132.1

$

123.3

$

689.3

$

620.7

Increase (Decrease) in
Unearned Premiums

10.7

12.2

50.8

53.5

7.7

8.9

69.2

74.6

Net Premiums Earned

143.6

131.8

352.1

299.9

124.4

114.4

620.1

546.1

Net Losses Paid

88.7

76.7

219.1

185.5

56.3

53.8

364.1

316.0

Increase (Decrease) in
Outstanding Losses

8.9

9.9

49.2

35.2

0.4

(2.4

)

58.5

42.7

Net Losses Incurred

97.6

86.6

268.3

220.7

56.7

51.4

422.6

358.7

Expenses Incurred

43.8

41.5

131.1

124.4

43.8

41.1

218.7

207.0

Dividends Incurred

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

Underwriting Income (Loss)

$

2.2

$

3.7

$

(47.3

)

$

(45.2

)

$

23.9

$

21.9

$

(21.2

)

$

(19.6

)

Ratios After Dividends
to Policyholders:

Loss

68.0

%

65.7

%

76.2

%

73.6

%

45.6

%

44.9

%

68.2

%

65.7

%

Expense

28.4

28.8

32.5

35.2

33.1

33.4

31.7

33.3

Combined

96.4

%

94.5

%

108.7

%

108.8

%

78.7

%

78.3

%

99.9

%

99.0

%

Premiums Written
as a % of Total

5.4

%

6.2

%

14.2

%

15.3

%

4.6

%

5.3

%

24.2

%

26.8

%

Page 12 of 16

THE CHUBB CORPORATION  WORLDWIDE
PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE QUARTER ENDED SEPTEMBER 30, 2003 AND 2002
(MILLIONS OF DOLLARS)

Commercial

Commercial

Workers'

Property

Total

Multiple Peril

Casualty

Compensation

and Marine

Commercial

2003

2002

2003

2002

2003

2002

2003

2002

2003

2002

Net Premiums Written

$

276.6

$

235.1

$

331.4

$

275.9

$

158.4

$

116.4

$

253.6

$

238.4

$

1,020.0

$

865.8

Increase
(Decrease) in Unearned Premiums

4.4

17.0

10.1

20.4

13.0

3.6

7.1

48.5

34.6

89.5

Net Premiums Earned

272.2

218.1

321.3

255.5

145.4

112.8

246.5

189.9

985.4

776.3

Net Losses Paid

152.8

136.4

142.7

126.5

58.5

48.3

117.0

74.4

471.0

385.6

Increase
(Decrease) inOutstanding Losses

2.2

2.7

54.6

647.2

42.8

22.3

11.1

42.4

110.7

714.6

Net Losses Incurred

155.0

139.1

197.3

773.7

101.3

70.6

128.1

116.8

581.7

1,100.2

Expenses Incurred

99.0

92.3

97.4

83.5

35.6

27.8

87.2

76.6

319.2

280.2

Dividends Incurred

(0.1

)

0.0

0.0

0.0

3.0

6.6

0.0

0.0

2.9

6.6

Underwriting Income (Loss)

$

18.3

$

(13.3

)

$

26.6

$

(601.7

)

$

5.5

$

7.8

$

31.2

$

(3.5

)

$

81.6

$

(610.7

)

Ratios After Dividends
to Policyholders:

Loss

56.9

%

63.8

%

61.4

%

302.8

%

71.2

%

66.5

%

52.0

%

61.5

%

59.2

%

143.0

%

Expense

35.8

39.2

29.4

30.3

22.9

25.3

34.4

32.1

31.4

32.6

Combined

92.7

%

103.0

%

90.8

%

333.1

%

94.1

%

91.8

%

86.4

%

93.6

%

90.6

%

175.6

Premiums Written
as a % ofTotal

9.7

%

10.2

%

11.6

%

11.9

%

5.6

%

5.0

%

8.9

%

10.3

%

35.8

%

37.4

%

The Property and Casualty underwriting results for 2002 include the effect of losses of $625.0 million
related to asbestos and toxic waste claims recognized in the third quarter. For the third quarter of 2002,
excluding the effect of such losses, the combined loss and expense ratio was 88.5% for Casualty
and 94.4% for Total Commercial.

Page 13 of 16

THE CHUBB CORPORATION  WORLDWIDE
PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE QUARTER ENDED SEPTEMBER 30, 2003 AND 2002
(MILLIONS OF DOLLARS)

Executive

Financial

Other

Total

Worldwide

Protection

Institutions

Specialty

Specialty

Total

2003

2002

2003

2002

2003

2002

2003

2002

2003

2002

Net Premiums Written

$

525.0

$

442.8

$

182.8

$

168.2

$

428.4

$

217.7

$

1,136.2

$

828.7

$

2,845.5

$

2,315.2

Increase (Decrease) in
Unearned Premiums

35.8

33.0

(6.1

)

4.4

103.8

28.2

133.5

65.6

237.3

229.7

Net Premiums Earned

489.2

409.8

188.9

163.8

324.6

189.5

1,002.7

763.1

2,608.2

2,085.5

Net Losses Paid

309.0

191.3

141.7

59.7

51.6

67.0

502.3

318.0

1,337.4

1,019.6

Increase (Decrease) in
Outstanding Losses

75.7

161.4

10.6

81.3

118.4

32.4

204.7

275.1

373.9

1,032.4

Net Losses Incurred

384.7

352.7

152.3

141.0

170.0

99.4

707.0

593.1

1,711.3

2,052.0

Expenses Incurred

134.2

116.3

54.4

47.5

150.2

68.6

338.8

232.4

876.7

719.6

Dividends Incurred

0.0

0.0

1.7

1.9

1.4

0.5

3.1

2.4

6.0

9.0

Underwriting Income (Loss)

$

(29.7

)

$

(59.2

)

$

(19.5

)

$

(26.6

)

$

3.0

$

21.0

$

(46.2

)

$

(64.8

)

14.2

(695.1

)

Increase in Deferred
Acquisition Costs

56.4

48.9

Adjusted Underwriting
Income (Loss)

$

70.6

$

(646.2

)

Ratios After Dividends
to Policyholders:

Loss

78.6

%

86.1

%

81.4

%

87.1

%

52.6

%

52.6

%

70.7

%

78.0

%

65.7

%

98.8

%

Expense

25.6

26.2

30.0

28.6

35.2

31.6

29.9

28.1

30.9

31.2

Combined

104.2

%

112.3

%

111.4

%

115.7

%

87.8

%

84.2

%

100.6

%

106.1

%

96.6

%

130.0

%

Premiums Written
as a % of Total

18.5

%

19.1

%

6.4

%

7.3

%

15.1

%

9.4

%

40.0

%

35.8

%

100.0

%

100.0

%

The Property and Casualty underwriting results for 2002 include the effect of losses of $625.0 million
related to asbestos and toxic waste claims recognized in the third quarter. For the third quarter of 2002,
excluding the effect of such losses, the combined loss and expense ratio was 99.9% for Worldwide Total.

Page 14 of 16

THE CHUBB CORPORATION  WORLDWIDE
PROPERTY AND CASUALTY UNDERWRITING RESULTS
FOR THE QUARTER ENDED SEPTEMBER 30, 2003 AND 2002
(MILLIONS OF DOLLARS)

Worldwide

United States

Foreign

Total

2003

2002

2003

2002

2003

2002

Net Premiums Written

$

2,415.4

$

1,962.2

$

430.1

$

353.0

$

2,845.5

$

2,315.2

Increase (Decrease) in
Unearned Premiums

279.7

249.2

(42.4

)

(19.5

)

237.3

229.7

Net Premiums Earned

2,135.7

1,713.0

472.5

372.5

2,608.2

2,085.5

Net Losses Paid

1,141.7

892.6

195.7

127.0

1,337.4

1,019.6

Increase (Decrease) in
Outstanding Losses

322.7

859.6

51.2

172.8

373.9

1,032.4

Net Losses Incurred

1,464.4

1,752.2

246.9

299.8

1,711.3

2,052.0

Expenses Incurred

719.2

584.8

157.5

134.8

876.7

719.6

Dividends Incurred

6.0

9.0

0.0

0.0

6.0

9.0

Underwriting Income (Loss)

$

(53.9

)

$

(633.0

)

$

68.1

$

(62.1

)

14.2

(695.1

)

Increase in Deferred
Acquisition Costs

56.4

48.9

Adjusted Underwriting
Income (Loss)

$

70.6

$

(646.2

)

Ratios After Dividends
to Policyholders:

Loss

68.8

%

102.8

%

52.3

%

80.5

%

65.7

%

98.8

%

Expense

29.8

29.9

36.6

38.2

30.9

31.2

Combined

98.6

%

132.7

%

88.9

%

118.7

%

96.6

%

130.0

%

Premiums Written
as a % of Total

84.9

%

84.8

%

15.1

%

15.2

%

100.0

%

100.0

%

The Property and Casualty underwriting results for 2002 include the effect of losses of $625.0 million
related to asbestos and toxic waste claims recognized in the third quarter. For the third quarter of
2002, excluding the effect of such losses, the combined loss and expense ratio was 96.1% for
United States Total and 99.9% for Worldwide Total.

Page 15 of 16

THE CHUBB CORPORATION

Definitions of Key Terms

Operating Income

Operating income, a non-GAAP financial measure, is net income excluding after-tax realized investment gains and losses.
Management uses operating income, among other measures, to evaluate its performance because the realization of investment
gains and losses in any given period is largely discretionary as to timing and can fluctuate significantly, which could
distort the analysis of trends.

Property and Casualty Investment
Income After Income Tax

Management uses property and casualty investment income after income tax, a non-GAAP financial measure, to evaluate its
investment performance because it reflects the impact of any change in the proportion of the investment portfolio
invested in tax-exempt securities and is therefore more meaningful for analysis purposes than investment income before
income taxes.

Book Value per Common Share with
Available-for-Sale Fixed Maturities at Amortized Cost

Book value per share represents the portion of consolidated shareholders equity attributable to one share of common
stock outstanding as of the balance sheet date. Consolidated shareholders equity includes, as part of accumulated other
comprehensive income, the after-tax appreciation or depreciation on the Corporations available-for-sale fixed maturities
carried at market value. The appreciation or depreciation on available-for-sale fixed maturities is subject to
fluctuation due to changes in interest rates and therefore could distort the analysis of trends. Management believes
that book value per common share with available-for-sale fixed maturities at amortized cost, a non-GAAP financial
measure, is an important measure of the underlying equity attributable to one share of common stock.

Combined Ratio or Combined Loss and
Expense Ratio

The combined loss and expense ratio, expressed as a percentage, is the key measure of underwriting profitability. The
Corporation evaluates the performance of its insurance businesses by using the combined loss and expense ratio calculated
in accordance with statutory accounting principles applicable to property and casualty insurance companies. It is the
sum of the ratio of losses to premiums earned (loss ratio) plus the ratio of statutory underwriting expenses to premiums
written (expense ratio) after reducing both premium amounts by dividends to policyholders.

Statutory accounting principles differ in certain respects from generally accepted accounting principles (GAAP). Under
statutory accounting principles, policy acquisition and other underwriting expenses are recognized immediately, not at
the time premiums are earned. To convert underwriting expenses to a GAAP basis, policy acquisition expenses are deferred
and recognized over the period in which the related premiums are earned.